GEHL COMPANY

                         SHAREHOLDER VALUE ADDED (SVA)

                     MANAGEMENT INCENTIVE COMPENSATION PLAN

                               December 15, 1995



                                   ARTICLE I

                              Statement of Purpose

1.1  The purpose of the Gehl Company Shareholder Value Added (SVA)
     Management Incentive Compensation Plan (the "Plan") is to
     provide a system of incentive compensation which will promote
     the maximization of shareholder value over the long term.  In
     order to align management incentives with shareholder
     interests, incentive compensation will reward the creation of
     value.  This Plan will tie incentive compensation to
     Shareholder Value Added ("SVA") and, thereby, reward management
     for creating value and penalize management for destroying
     value.

1.2  SVA is the performance measure of value creation.  SVA reflects the
     benefits and costs of capital employment.  Managers create value when
     they employ capital in an endeavor that generates a return that exceeds
     the cost of the capital employed.  Managers destroy value when they
     employ capital in an endeavor that generates a return that is less than
     the cost of capital employed.  By imputing the cost of capital upon the
     operating profits generated by a business group, SVA measures the total
     value created (or destroyed) by management.

            SVA = (Net Operating Profit After Tax - Capital Charge)

1.3  Each Plan Participant is placed in a classification.  Each classification
     has a prescribed target bonus.  The bonus earned in any one year is the
     result of multiplying the Actual Bonus Percentage times the Participant's
     base pay.  Bonuses that fall within a prespecified range will be fully
     paid out.  Positive and negative bonuses falling outside this range are
     banked forward in the Participant's Bonus Bank, with one-third of the net
     positive balance paid out each year in cash.  A Participant is eligible
     for a bonus for a particular calendar year only if the Participant is
     employed by Gehl on December 31 of that year.

                                   ARTICLE II

                  Definition of SVA and the Components of SVA

               Unless the context provides a different meaning, the following
               terms shall have the following meanings.

2.1  "Participating Group" means a Gehl business value center which has been
     uniquely identified for the purpose of calculating SVA and SVA based
     bonus awards.  Some Participants' awards may be a mixture of two or more
     different Participating Groups.

For the purpose of this plan, the Participating Groups are listed on Exhibit
B.

2.2  "Capital" means the net investment employed in the operations of each
     Participating Group.  The components of Capital are as follows:

                    Cash
             Plus:  Wholesale Accounts Receivable--at Gross Value
             Plus:  Retail Finance Contracts--at Gross Principal Value
             Plus:  FIFO Inventory
             Plus:  Prepaid and Other Current Assets
             Plus:  Fixed Assets at Net Book Value
             Plus:  Other assets
             Plus:  Capitalized Research and Development
             Plus:  Corporate Allocated Capital
             Less:  Noninterest Bearing Current Liabilities
             Equals:     Capital

2.3  Each component of Capital will be measured by computing an average
     balance based on the ending monthly balance for the twelve months of the
     Fiscal Year.

2.4  "Cost of Capital" or "C" means the weighted average of the after tax cost
     of debt and equity for the year in question.

     The Cost of Capital will be reviewed and revised, if necessary, annually. 
     Calculations will be carried to one decimal point.

     The cost of capital for the initial year is 11.2%.  See Exhibit A.  In
     subsequent plan years the methodology for the calculation of the Cost of
     Capital will be as in Exhibit A:

     Short-term debt is to be treated as long term for purposes of computing
     the cost of capital.

2.5  "Capital Charge" means the deemed opportunity cost of employing Capital
     in the business of each Participating Group.  The Capital Charge is
     computed as follows:

          Capital Charge = Capital x Cost of Capital (C*)

2.6  "Net Operating Profit After Tax" or "NOPAT"

     "NOPAT" means the after tax cash earnings attributable to the capital
     employed in the Participating Group for the year in question.  The
     components of NOPAT are as follows:
      
                    Operating Earnings
             Plus:  Interest Expense
             Plus:  Increase (Decrease) in Capitalized R & D (See Note 1)
             Plus:  Increase (Decrease) in Bad Debt, Warranty, Product
                    Liability, and Volume Discount Reserves
             Plus:  Amortization of Goodwill Acquired After January 1, 1996
             Less:  Other Expense (Excluding Interest on Debt)
             Plus:  Other Income (Excluding Investment Income, if any)
             Equals:     Net Operating Profit Before Tax
             Less:  Taxes (See Note 2)
             Equals:     Net Operating Profit After Tax

     Note:   (1)    Since R & D is Capitalized, the difference in the balance
             is the expensed amount for that year.
             (2)    Taxes are assumed to be 38% of Net Operating Profit Before
             Tax.

2.7  "Shareholder Value Added" or "SVA" means the NOPAT that remains after
     subtracting the Capital Charge, expressed as follows:

                   NOPAT
             Less: Capital Charge
             Equals:     SVA

     SVA may be positive or negative.

                                  ARTICLE III

                Definition and Computation of Target Bonus Value

3.1  "Actual SVA" means the SVA as calculated for each Participating Group for
     the year in question.

3.2  "Target SVA" means the level of SVA that is expected in order for a
     Participant of the Participating Group to receive the Target Bonus Value.

     The Target SVA for the first year is set at the calculated SVA for the
     year prior to the first year of the plan.   After the first year, the
     Target SVA is revised according to the following formula:

               Prior Year's Actual SVA + Prior Year's Target SVA
     Target SVA =             2           + Expected Improvement in SVA
                                             (Note:  Improvement Factor)
     "Expected Improvement in SVA" means the constant SVA improvement (when
     prior year's SVA is negative), or the prior year's actual SVA times the
     sum of inflation (as per the prior year's CPI (all Urban Consumers)) plus
     5% (when prior year's SVA is 0 or positive), that is added to shift the
     target up each year.  See Exhibit B for the Expected Improvement for each
     Participating Group when SVA is negative.

3.3  "Target Bonus Value" means the "Target Bonus Percentage" times a
     Participant's base pay.

3.4  "Target Bonus Percentage" is determined for each Participant by the
     Compensation Committee of the Board of Directors and approved by the
     Board of Directors.

3.5  "Actual Bonus Value" means the bonus earned (see Note 1) by a Participant
     and is computed as the Actual Bonus Percentage times a Participant's base
     pay.  A Participant who participates in more than one Participating Group
     will have multiple Actual Bonus Values (see Note 2).

Note:

   (1)                        A portion of the Actual Bonus Value may be
     placed in the Participants' Bonus Bank.  See Article IV for details on
     the Bonus Bank.

   (2)                        A Participant in more than one Participating
     Group has a "Weighting Percentage" assigned for each Group.  The
     Weighting Percentage is applied to determine the bonus earned from
     participation in each Participating Group.  The Weighting Percentage
     always totals to 100%.

3.6  "Actual Bonus Percentage" is determined by multiplying the Target Bonus
     Percentage by the Bonus Performance Value.

3.7  "Bonus Performance Value" means the difference between the Actual SVA and
     the Target SVA divided by the Leverage Factor, plus 1.0.

                           [Actual SVA - Target SVA]   + 1
     Bonus Performance Value =                 [Leverage Factor]

3.8  "Leverage Factor" is the negative (positive) deviation from Target SVA
     necessary before a zero (two times Target) bonus is earned.  See Exhibit
     B for the Leverage Factor of each Participating Group.

                                   ARTICLE IV

                           Description of Bonus Banks

4.1  Establishment of a Bonus Bank.  To encourage a long-term commitment by
     Participants to the Company, a portion of exceptional bonuses (amounts
     above Target and all negative bonuses) shall be credited to "at risk"
     deferred accounts ("Bonus Banks"), with the level of payout contingent on
     sustained high performance and improvements and continued employment as
     provided herein.

4.2  Although a Bonus Bank may, as a result of negative SVA, have a deficit,
     no Plan Participant shall be required, at any time, to reimburse his/her
     Bonus Bank.

4.3  "Bonus Bank" means, with respect to each Participant, a bookkeeping
     record of an account to which amounts are credited, or debited as the
     case may be, from time to time under the Plan and from which bonus
     payments to such Participants are debited.

4.4  "Bank Balance" means, with respect to each Participant, a bookkeeping
     record of the net balance of the amounts credited to and debited against
     such Participant's Bonus Bank.  A Participant's Bank Balance shall
     initially be equal to zero.

4.5  Payout Rule:  If the Bank balance entering the Plan Year is zero or
     positive, then

     (1)                      Pay any positive bonus earned up to the "Target
        Bonus Value",
     (2)                      Add any unpaid portion of the bonus earned
        (including negative bonuses) to the Bonus Bank,
     (3)                      Pay out 1/3 of any Positive Bank Balance
     (4)                      Carry the remaining Bank Balance forward to the
        next year.

     If the Bank Balance entering the Plan Year is negative, then

     (a)                      If a positive bonus is earned that is equal to
        or more than twice the absolute value of the negative Bank Balance,
        then

        (1)                   credit a portion of the bonus earned to the Bank
          Balance to bring it to zero,
        (2)                   pay the balance of the bonus earned according to
          the rules for a zero or positive Bank Balance.

     (b)                      If a positive bonus is earned that is less than
        twice the absolute value of the negative Bank Balance or if any
        negative bonus is earned, then

        (1)                   Pay 1/3 of any positive bonus earned up to the
          "Target Bonus Value",
        (2)                   Add any unpaid portion of the bonus earned
          (including negative bonuses) to the Bonus Bank,
        (3)                   Pay out 1/3 of any Positive Bank Balance,
        (4)                   Carry the remaining Bank Balance forward to the
          next year.

                                   ARTICLE V

                 Plan Participation, Transfers and Terminations

5.1  Participant Group.  The Compensation Committee of the Board of Directors
     (the "Committee"), upon recommendation of the CEO, will have sole
     discretion in determining who shall participate in the Plan.  Employees
     designated for Plan participation by the Committee shall be management or
     highly compensated key employees.

5.2  Transfers.  A Participant who transfers his employment from one
     Participating Unit of the Company to another shall retain his Bonus Bank
     and will be eligible to receive future SVA Plan Awards in accordance with
     the provisions of the SVA Plan.

5.3  Retirement or Disability.  A Participant who terminates employment with
     the Company, at or after age sixty, for any reason ("retirement"), or
     suffers a "disability," as such term is defined in the Company's long-
     term disability benefits program, while in the Company's employ, shall be
     eligible to receive the balance of their Bonus Bank.

5.4  Involuntary Termination Without Cause or Death.  A Participant who is
     Terminated without cause or who dies shall receive any positive Bonus
     Bank balance.

5.5  Voluntary Termination.  In the event that a Participant voluntarily
     terminates employment with the Company, the right of the Participant to
     their Bonus Bank shall be forfeited unless a different determination is
     made by the Committee.

5.6  Termination for Cause.  "Cause" shall mean:

          (1)                 any act or acts of the Participant constituting
             a felony under the laws of the United States, any state thereof
             or any foreign jurisdiction;
          (2)                 any material breach by the Participant of any
             employment agreement with the Company or the policies of the
             Company or the willful and persistent (after written notice to
             the Participant) failure or refusal of the Participant to comply
             with any lawful directives of the Board;
          (3)                 a course of conduct amounting to gross neglect,
             willful misconduct or dishonesty; or
          (4)                 any misappropriation of material property of the
             Company by the Participant or any misappropriation of a corporate
             or business opportunity of the Company by the Participant.

5.7  Payment and Breach of Agreement.  In the event a Participant is entitled
     to the payment of a positive Bonus Bank balance pursuant to 5.3 or 5.4,
     one-half of such balance shall be paid in December of the year of
     termination and the remaining one-half shall be paid in the following
     December, without any interest adjustment.  Notwithstanding any other
     provision of the Plan or any other agreement, in the event that a
     Participant shall breach any noncompetition agreement with the Company or
     breach any agreement with respect to the postemployment conduct of such
     Participant, any remaining payment otherwise due to the Participant
     hereunder shall be forfeited.

5.8  No Guarantee.  Participation in the Plan provides no guarantee that a
     payment under the Plan will be paid.  Selection as a Participant is no
     guarantee that payments under the Plan will be paid or that selection as
     a Participant will be made in the subsequent Calendar Year.


                                   ARTICLE VI

                               General Provisions

6.1  Withholding of Taxes.  The Company shall have the right to withhold the
     amount of taxes, which in the determination of the Company, are required
     to be withheld under law with respect to any amount due or paid under the
     Plan.

6.2  Expenses.  All expenses and costs in connection with the adoption and
     administration of the Plan shall be borne by the Company.

6.3  No Prior Right or Offer.  Except and until expressly granted pursuant to
     the Plan, nothing in the Plan shall be deemed to give any employee any
     contractual or other right to participate in the benefits of the Plan.

6.4  Claims for Benefits.  In the event a Participant (a "claimant") desires
     to make a claim with respect to any of the benefits provided hereunder,
     the claimant shall submit evidence satisfactory to the Committee of facts
     establishing his entitlement to a payment under the Plan.  Any claim with
     respect to any of the benefits provided under the Plan shall be made in
     writing within ninety (90) days of the event which the claimant asserts
     entitles him to benefits.  Failure by the claimant to submit his claim
     within such ninety (90) day period shall bar the claimant from any claim
     for benefits under the Plan.

6.5  In the event that a claim which is made by a claimant is wholly or
     partially denied, the claimant will receive from the Committee a written
     explanation of the reason for denial and the claimant or his duly
     authorized representative may appeal the denial of the claim to the
     Committee at any time within ninety (90) days after the receipt by the
     claimant of written notice from the Committee of the denial of the claim. 
     In connection therewith, the claimant or his duly authorized
     representative may request a review of the denied claim; may review
     pertinent documents; and may submit issues and comments in writing.  Upon
     receipt of an appeal, the Committee shall make a decision with respect to
     the appeal and, not later than sixty (60) days after receipt of a request
     for review, shall furnish the claimant with a decision on review in
     writing, including the specific reasons for the decision written in a
     manner calculated to be understood by the claimant, as well as specific
     reference to the pertinent provisions of the Plan upon which the decision
     is based.  In reaching its decision, the Committee shall have complete
     discretionary authority to determine all questions arising in the
     interpretation and administration of the Plan, and to construe the terms
     of the Plan, including any doubtful or disputed terms and the eligibility
     of a Participant for benefits.

6.6  Action Taken in Good Faith:  Indemnification.  The Committee may employ
     attorneys, consultants, accountants or other persons and the Company's
     directors and officers shall be entitled to rely upon the advice,
     opinions or valuations of any such persons.  All actions taken and all
     interpretations and determinations made by the Committee in good faith
     shall be final and binding upon all employees who have received awards,
     the Company and all other interested parties.  No member of the
     Committee, nor any officer, director, employee or representative of the
     Company, or any of its affiliates acting on behalf of or in conjunction
     with the Committee, shall be personally liable for any action,
     determination, or interpretation, whether of commission or omission,
     taken or made with respect to the Plan, except in circumstances involving
     actual bad faith or willful misconduct.  In addition to such other rights
     of indemnification as they may have as members of the Board, as members
     of the Committee or as officers or employees of the Company, all members
     of the Committee and any officer, employee or representative of the
     Company or any of its subsidiaries acting on their behalf shall be fully
     indemnified and protected by the Company with respect to any such action,
     determination or interpretation against the reasonable expenses,
     including attorneys' fees actually and necessarily incurred, in
     connection with the defense of any civil or criminal action, suit or
     proceeding, or in connection with any appeal therein, to which they or
     any of them may be a party by reason of any action taken or failure to
     act under or in connection with the Plan or an award granted thereunder,
     and against all amounts paid by them in settlement thereof (provided such
     settlement is approved by independent legal counsel selected by Company)
     or paid by them in satisfaction of a judgment in any action, suit or
     proceeding, except in relation to matters as to which it shall be
     adjudged in such action, suit or proceeding that such person claiming
     indemnification shall in writing offer the Company the opportunity, at
     its own expense, to handle and defend the same.  Expenses (including
     attorney's fees) incurred in defending a civil or criminal action, suit
     or proceeding shall be paid by the Company in advance of the final
     disposition of such action, suit or proceeding if such person claiming
     indemnification is entitled to be indemnified as provided in this
     Section.

6.7  Rights Personal to Employee.  Any rights provided to an employee under
     the Plan shall be personal to such employee, shall not be transferable
     (except by will or pursuant to the laws of descent or distribution), and
     shall be exercisable, during his lifetime, only by such employee.

6.8  Distribution of Bank Balances Upon Termination of the Plan.  Upon
     termination of the Plan, the Bank Balance of each Participant shall be
     distributed as soon as practicable but in no event later than 90 days
     from such event.  The Committee, in its sole discretion, may accelerate
     distribution of the Bank Balance, in whole or in part, at any time
     without penalty.

6.9  Nonallocation of Award.  In the event of a suspension of the Plan in any
     Plan Year as provided herein at Article XI, Section 11.1, the Current
     Bonus for the subject Plan year shall be deemed forfeited and no portion
     thereof shall be allocated to Participants .  Any such forfeiture shall
     not affect the calculation of SVA in any subsequent year.

                                  ARTICLE VII

                                   Limitation

7.1  No Continued Employment.  Nothing contained herein shall provide any
     employee with any right to continued employment or in any way abridge the
     rights of the Company and its Participating Units to determine the terms
     and conditions of employment and whether to terminate employment of any
     employee.

7.2  No Vested Rights.  Except as otherwise provided herein, no employee or
     other person shall have any claim of right (legal, equitable, or
     otherwise) to any award, allocation, or distribution or any right, title,
     or vested interest in any amounts in his Bonus Bank and no officer or
     employee of the Company or any Participating Group or any other person
     shall have any authority to make representations or agreements to the
     contrary.  No interest conferred herein to a Participant shall be
     assignable or subject to claim by a Participant's creditors.  The right
     of the Participant to receive a distribution hereunder shall be an
     unsecured claim against the general assets of the Company and the
     Participant shall have no rights in or against any specific assets of the
     Company as the result of participation hereunder.

7.3  Not Part of Other Benefits.  The benefits provided in this Plan shall not
     be deemed a part of any other benefit provided by the Company to its
     employees.  The Company assumes no obligation to Plan Participants except
     as specified herein.  This is a complete statement, along with the
     Schedules and Appendices attached hereto, of the terms and conditions of
     the Plan.

7.4  Other Plans.  Nothing contained herein shall limit the Company or the
     Compensation Committee's power to grant bonuses to employees of the
     Company, whether or not Participants in this Plan.

7.5  Limitations.  Neither the establishment of the Plan nor the grant of an
     award hereunder shall be deemed to constitute an express or implied
     contract of employment for any period of time or in any way abridge the
     rights of the Company to determine the terms and conditions of employment
     or to terminate the employment of any employee with or without cause at
     any time.

7.6  Unfunded Plan.  This Plan is unfunded and is maintained by the Company in
     part to provide deferred compensation to a select group of management and
     highly compensated key employees.  Nothing herein shall create or be
     construed to create a trust of any kind, or a fiduciary relationship
     between the Company and any Participant.

                                  ARTICLE VIII

                                   Authority

8.1  Compensation Committee Authority.  Except as otherwise expressly provided
     herein, full power and authority to interpret and administer this Plan
     shall be vested in the Compensation Committee.  The Compensation
     Committee may from time to time make such decisions and adopt such rules
     and regulations for implementing the Plan as it deems appropriate for any
     Participant under the Plan.  Any decision taken by the Compensation
     Committee arising out of or in connection with the construction,
     administration, interpretation and effect of the Plan shall be final,
     conclusive and binding upon all participants and any person claiming
     under or through them.

8.2  Board of Directors Authority.  The Board shall be ultimately responsible
     for administration of the Plan.  References made herein to the
     "Compensation Committee" or "Committee" assume that the Board of
     Directors has created a Compensation Committee to administer the Plan. 
     In the event a Compensation Committee is not so designated, the Board
     shall administer the Plan.  The Board or its Compensation Committee, as
     appropriate, shall work with the CEO of the Company in all aspects of the
     administration of the Plan.

                                   ARTICLE IX

                                     Notice

9.1  Any notice to be given pursuant to the provisions of the Plan shall be in
     writing and directed to the appropriate recipient thereof at his business
     address or office location.

                                   ARTICLE X

                                 Effective Date

10.1 This Plan shall be effective as of January 1, 1996.

                                   ARTICLE XI

                                   Amendments

11.1 Amendment.  This Plan may be amended, suspended or terminated at any time
     at the sole discretion of the Board upon the recommendation of the
     Compensation Committee.  Any action which suspends the bonus accruals for
     more than twelve months shall be deemed a termination of the Plan.

11.2 Compensation Committee Review.  As to future targets and awards under the
     Plan, the Compensation Committee will review projected performance data
     at its October meeting, recommend forward targets at its December meeting
     and review for approval specific prior performance so as to make the
     appropriate awards under the Plan at its February meeting.  The
     Compensation Committee will make its recommendations to the Board of
     Directors.

11.3 Board of Directors.  The Board of Directors reserves, solely to itself,
     the right to make decisions as to targets, achievements, and awards
     contemplated under the Plan.  The decision as to who participates in the
     Plan and the duration of the Plan are also the sole rights of the Board
     of Directors.

11.4 Protected Benefits.  Notwithstanding the foregoing, after December 31 of
     an applicable year, the Board may not amend the Plan or otherwise revise
     the eligible participants or other Plan provisions such that the
     Participant receives less than the smaller of (i) the amount payable by
     the Plan prior to such amendment or (ii) the Participant's Target Bonus
     Value as determined prior to such amendment.

11.5 Notice.  Notice of any amendment, suspension or termination shall be
     given promptly to each Participant.


                                  ARTICLE XII

                                 Applicable Law

12.1 This Plan shall be construed in accordance with the provisions of the
     laws of the State of Wisconsin  to the extent not preempted by Federal
     law.
                                   Exhibit A


                       Calculation of the Cost of Capital


          Inputs Variables:

          Risk Free Rate = Average Daily closing yield on U.S. Government
                      30 Yr. Bonds (for the month of October preceding the
                      Plan Year)

          Market Risk Premium = 6.0% (Fixed)

          Beta = 1.50 (to be evaluated annually)

          Debt/Capital Ratio = Initial Year 40%; subsequent years computed
                         using the monthly average debt/capital ratio from
                         the business plan for that subsequent year.

          b = Cost of Debt Capital (Weighted Average Yield on the
             Company's Long Term Debt Obligations)

          Marginal Tax Rate = 38.0%

          Calculations:

          y = Cost of Equity Capital
             = Risk Free Rate + (Beta x Market Risk Premium)

          Weighted Average Cost of Capital = [Cost of Equity Capital x
          (1 - Debt/Capital Ratio)] + 
                            [Cost of Debt x (Debt/Capital Ratio) x (1 -
                            Marginal Tax Rate)]

          c* = [y x (1-Debt/Capital)] + [b x (Debt/Capital) x (1 -
          Marginal Tax Rate)]


                                   Exhibit B

                                                    SVA Expected
      Participating Groups       Leverage Factor    Improvement
                                                       Factor

Corporate                      $5,000,000        $1,500,000
Agriculture Group               4,000,000         1,500,000
Construction Group              4,000,000                *
West Bend, WI Plant             4,000,000         1,000,000
Lebanon, PA Plant               2,000,000           500,000
Yankton, SD Plant               2,000,000                *
Madison, SD Plant               2,000,000                *


 *Dollar values are only used when SVA is negative.  When SVA is 0 or
positive, improvement factor is prior year's actual SVA times the sum of
inflation (U.S. CPI index) plus 5%.